Representatives of the National Bank of Kyrgyzstan and commercial banks discussed the risks of secondary sanctions

On May 23, 2023, a working meeting was held between the employees of the National Bank and the compliance services of commercial banks to discuss topical issues regarding sanctions and the risks of secondary sanctions. This is reported by the National Bank.

Also, issues of compliance with the legislation of Kyrgyzstan in the field of combating the financing of terrorist activities and the legalization (laundering) of criminal proceeds (hereinafter referred to as PFTD/LPD) during the introduction of new banking products/services and financial technologies were discussed.

At the meeting, it was noted that since the introduction of restrictive measures by the United States and the European Union against the economic partner countries of Kyrgyzstan, the National Bank has been carrying out appropriate work in order to minimize the negative impact of sanctions on the country's banking system and avoid the risk of termination of banking correspondent relations.

At the meeting, it was also recommended that commercial banks continue measures to strengthen internal control when servicing bank customers in terms of due diligence of customers in accordance with the requirements of the legislation of the Kyrgyz Republic on PFTD/LPD, paying special attention to transactions with persons from jurisdictions subject to sanctions.

Source: knews.kg